UPI transaction fee: In an attempt to bring respite among the baffled UPI users, National Payments Corporation of India (NPCI) on Wednesday through its twitter cleared all the rumours regarding the interchange fee on Unified Payments Interface (UPI) transaction of over Rs 2000 through Prepaid Payment Instruments(PPIs).
NPCI clears rumours
In its press release NPCI said the UPI has emerged as preferred mode of digital payment and transactions. It gives free, fast, secure and seamless experience to its users. The most used method of UPI payments is linking the Bank account in any UPI enabled app for making transactions. it contributes over 99.9% of total UPI payments.
NPCI in its statement made clear that these bank account-to-account transactions continue to remain free for customers and merchants.
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UPI ecosystem
The NPCI further cleared that in recent regulatory norms, the prepaid Payments Instruments(PPI wallets) have been allowed to be a part of interoperable UPI ecosystem. Now PPI wallets have become a part of interoperable UPI ecosystem. NPCI said that interchange fee will be imposed for only PPI merchant transactions and there will be no charge imposed on customers. It also cleared that there would be no fees for the bank account to bank account based UPI transactions.
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It was reportedly said that the move was aimed at increasing revenue for banks and payment service providers, who are fighting with the high cost of UPI transactions. the fee would be imposed from April 1 and interchange pricing will be revised by September 30, 2023
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